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TMI Blog2019 (12) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... . has stated in the writ petition that a search and seizure operation under Section 132 of the Income Tax Act, 1961, were carried out in the group "Kaleshwari Refinery Pvt. Ltd" and others on 17.5.2017 and summons were issued under Section 131 to several persons related to the groups also to one Shri Vivek Pathak, Director of the petitioner - Company to present himself on 19.5.2017 before the Officer of Director of Income Tax (Investigation), Chennai. The statement of Vivek Pathak, Director was noted down under Section 134(4) and 132(4) of the Income Tax Act, 1961 on 19.5.2017. He has categorically stated that the petitioner - Company is having business transaction with KRPL and its subsidiary - KICPL based at Singapore and the Company is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the petitioner has vehemently argued before this court that keeping in view the judgment delivered in the case of Ajanta Industries V/s. Central Board of Direct Taxes, 1976 102 ITR 281 (SC), it is mandatory under the law to communicate the reasons recorded for the purposes of the transfer of a case from one circle to another circle and the present case, the reasons recorded were not at all communicated to the petitioner. 5. This court has repeatedly asked, learned counsel for the Income Tax Department whether the reasons were communicated to the petitioner or not, she was not able to show any document to establish that reasons recorded by the Department were communicated at any point of time to the assessee. Nor the return reflect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Officer to another. Provided that nothing in this sub-section shall be deemed to require any such opportunity to be given where the transfer is from one Income- tax Officer to another whose offices are situated in the same city, locality or place. (2) The transfer of a case under subsection (1) may be made at any stage of the proceedings, and shall not render necessary the reissue of any notice already issue by the Income-tax Officer from whom the case is transferred. Explanation:-In this section and in sections 121 and 125, the word 'case' in relation to any person whose name is specified in any order or direction issued thereunder, means all proceedings under this Act in respect of any year which may be pending on the date o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner in this behalf) may, by general or special order in writing, specify for the distribution and allocation of the work to be performed". (2) The transfer of a case under subsection (1) may be made at any stage of the proceedings, and shall not render necessary the reissue of any notice already issued by the Income-tax Officer or Income-tax Officers from whom the case is transferred. Explanation:-In this section and in sections 121, 123, 124 and 125, the word 'case' in relation to any person whose name is specified in any order or direction issued thereunder means all proceedings under this Act in respect of any year which may be pending on the date of such order or direction or which may have been completed on or before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sharma also drew our attention to a decision of this Court in S Narayanappa and Others vs. Commissioner of Income-tax, Bangalore where this Court was dealing with section 34 of the old Act. It is clear that there is no requirement in any of the provisions of the Act or any section laying down as a condition for the initiation of the proceedings that the reasons which induced the Commissioner to accord sanction to proceed under section 34 must also be communicated to the assessee. The Income-tax Officer need not communicate to the assessee the reasons which led him to initiate the proceedings under section 34. The case under section 34 is clearly distinguishable from that of a transfer order under section 127(1) of the Act. When an order un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as provided under Section 127 of the Act has not been complied with and therefore, the judgment is distinguishable on facts. 9. Learned counsel for the Income Tax Department has also placed reliance upon the judgment delivered in the case of Bhatia Minerals V/s. Commissioner of Income-Tax & Others, reported in 1993 ITR Vol. 200 Page 591. The aforesaid case certainly deals with transfer of a case from one Assessing Officer to another Assessing Officer. However, the issue of requirement of recording reasons and communication thereof has not been considered by the Allahabad High Court in the aforesaid judgment and therefore, the judgment is again distinguishable on facts. 10. She has also placed reliance upon the judgment delivered in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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